Dried shrimp paste is also called terasi. Seed and shred the chilies.
Crush lemon grass with side of cleaver.
Cut chicken in half. Wash and pat dry. Rub with salt and oil. Grill
over hot coals about 10-15 minutes each side, until done.
Slice chicken into bite-sized pieces. Wrap shrimp paste in foil and
grill each side over moderate heat about 2 minutes. Pound shallots,
garlic, chilies, and toasted shrimp paste into a paste. Heat oil in
frying pan. Add paste and fry on moderate heat, stirring, for about
4-5 minutes, or until dry, do not burn.
Add coconut milk gradually, stirring after each addition. Add bay
leaves and lemon grass. Bring to a boil. Simmer 5 minutes to allow
flavors to blend.
Add lime juice. Stir. Add cooked chicken and reheat in sauce.
Garnish with the shredded chilie. Serve with rice and Sambal Ulek.